Business Plan Report: Planning a New Venture in the UK

This report details the comprehensive plan for a new business venture, specifically a "Bistro cafe and lounge" in Greenwich, UK. It begins with an introduction outlining the importance of thorough research in establishing a new business. Task 1 delves into different types of business organizations (sole proprietorship, partnership, LLC), analyzing their benefits, limitations, and associated risks. It also explores sources of finance (savings, loans, etc.), legal considerations (licensing, insurance, health and safety), and market conditions impacting the venture, including an analysis of the UK food service industry. Task 2 focuses on business planning, including developing the mission, vision, aims, and objectives of the business, proposing business structures, and analyzing market gaps for products. It also covers forecasting, identifying potential responses if targets aren't met. Finally, Task 3 covers a pitch for funding, and the report concludes with references.

Planning a New
Business Venture

TABLE OF CONTENTS
INRODUCTION..............................................................................................................................1
TASK 1............................................................................................................................................1
Research and report..........................................................................................................................1
a) Different type of business organisations by analysing their potential benefits, limitations
and associated risks................................................................................................................1
b) Analysing the sources of finance for each type of business organisation..........................2
c) Evaluation of legal considerations relevant to plan a business venture.............................4
d) Analysis of the market conditions that will impact on setting up the new business venture..4
TASK 2............................................................................................................................................6
Business Planning............................................................................................................................6
a) The organisation developing the mission, vision, aims and objectives of the business.....6
Proposing business structures and systems that will deliver the aims and objectives of the
business...................................................................................................................................7
b) The product........................................................................................................................7
Analysing gaps in the market for potential products..............................................................7
Analysing target markets for the business venture.................................................................8
Interpreting the external factors and market conditions analysed to justify the need for product
................................................................................................................................................8
Specification of business products to meet the needs of targeted market..............................9
c) Forecast..............................................................................................................................9
Producing business planning forecasts based on targets........................................................9
Identification of business responses if these targets are not met..........................................10
TASK 3..........................................................................................................................................11
PITCH............................................................................................................................................11
Pitch for his funding of your business proposal by providing the produced documentation to
support the pitch...................................................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................14

INRODUCTION
A new business set up comprises with some vital procedural tactics into which the
individuals are required to conduct primary research of certain accessible alternatives. Such
planned structure is basically to begin towards a succeeding approach of establishing a complete
new set up. It should not showcase any intervened formulation of any faulty measure into it
where the below report have demonstrated about an integral plan of setting up the business
(Zhao, Peng and Sheard, 2013). It has symbolised the business plan as a fine mean of
documentation which can also be referred for the future consideration of an established business.
It has clearly referred to some affiliated constituents of finance with some other influential
components of certain legitimate cogitations as per the designated marketplace for the set up.
TASK 1
Research and report
a) Different type of business organisations by analysing their potential benefits, limitations and
associated risks
It is mainly to define some potent alternatives of businesses where one can profoundly
choose from some accessible options of sole proprietorship, general partnership, Limited liability
company (LLC) and corporation firms, etc. Each of these are however associated with some
affiliated factors of benefits and drawbacks. These factors in turn impacts upon some primitive
considerations of setting up a business by directly impacting upon their costing, structure of
taxation, liability and other components of protection by together defining the complexing nature
of the business. It is thus important for the proprietors to make a vigorous selection of
establishing their business by opting an accurate format (Wang, 2016). Below described
measures are referred to some common alternatives with their relative constituents of benefits
and drawbacks-
 Sole proprietorship- It is amongst the most common concept of getting into a business
where a single owner will activate the entire functionalities of the set up. The proprietor
is hereby require to manage the overall tasks of administration by together powering any
situation of loss or failure, etc. As a result to which, the financial obligations is also
referred to be a personal liability of the business owner (Walker and Walker, 2012).
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◦ A relative advantage to it is where the proprietors are hereby required to carry
minimal number of formalities under an inexpensive method where they are also free
to mix both their personal and business assets.
◦ It is together associated with a leading factor of drawback into which the proprietors
are non exempted to limitless personal liability in order to pay debts, losses and other
affiliated liabilities of their business (Mok, Sparks and Kadampully, 2013).
 Partnership- It is yet another vital alternative of establishing a business set up that mainly
includes two or more people to mutually share the generated profit and loss of the
business. LLC is referred to be a hybrid form of partnership businesses with its new
concepts of operating the business activities. It is where the owners of such
establishments are directly accessible to the benefited factors of both corporation and
partnership businesses. It consists of a major advantage of shielding constituent to the
owners from their personal liabilities into which the associated profits and losses can be
passed thorough the proprietors with no prior intervention of taxation into it (Medlik,
2012). However, the general concept of partnership is together incorporated with some
related factors of benefits and drawbacks, as mentioned below-
◦ The general partnership concept of businesses are free from huge transaction of taxes
as of its hybrid format and set of corporation firm where it is together free form some
mandate formalities of conducting annual meetings, etc.
◦ The concentrated partners of the businesses are often required to take the
responsibility of charges on each other where a weakened structure with oral dealings
can directly lead to create a disputed prospect among the associated partners.
b) Analysing the sources of finance for each type of business organisation
Sources of finance is referred to be a critical stature for the business organisations where
the owner is hereby required to go through certain enumerable fact sheets of investing the fund
into a respectable manner. It is however considered to be the most ambitious part of the business
which renders some rational measures to opt for a peculiar mean of finance (Leung and et.al.,
2013). Below stated alternatives are hereby detailed as per the above carried analysis of distinct
business set ups with their suitable options to choose from-
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 Sole proprietorship- Such form of businesses with an active existence of a sole proprietor
into it usually have very less access to the financial resources. As a result to which, they
are often confined to an active mean of personal resources, as delineated below-
◦ Savings- It is mainly with reference to invest the personal cash balance of the owner
while starting up a new business. This is considered to be the most inexpensive way
of initiating a business into this particular format of sole proprietorship. Such
investment of personal funds together maximises the control of owners over their
businesses (Hon and Lui, 2016). This also depicts a strong sense of commitment by
the proprietor to some extraneous investors of funds.
◦ Borrowing from friends and families- It is referred to yet another common method of
starting up a business with the help of family members and friends who are
supportive about the plan. It is together depicted to be an inexpensive strategy into
which the repayment options along with the interest rates are often into a considerable
prospect as compared to the range of bank loans. Partnership- A partnership business often exists with two or more partners and as a result
to which, they are accessible to both the means of internal and external resources
(Gibson, 2016). The intrinsic resources are hereby related to some personal elements of
investment, whereas, the extrinsic sources are as mentioned below-
◦ Loan capital- Such external source of finance exists with a dual conception of lending
into which bank loan and overdraft facilities are the two most common measures for
inception of any new business set up. However, both these options are further
segregated in long term and short term association of business. Bank loan is generally
referred for a long term prospect of investment where the applicant is hereby required
to specify a long term period for the acquisition of loan amount with its specified
interest rates to detect the repayment amount. Such alternative is a considerable
alternative for financing investment with a lower interest rate as compared to another
option of bank overdraft (del Mar Alonso, Almeida and Bremser, 2013). The
overdraft facility is however referred to a flexible financial source with a short term
perspective of usage only at the time of requirement. It is a superior source to be used
for handling the seasonal percepts of operating the business in case it meets any
shortfall of cash balance.
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c) Evaluation of legal considerations relevant to plan a business venture
Legal consideration are referred to be the foremost aspect for starting up a new
establishment as a primary factor of affecting the business. It mainly refers the business entities
to follow a legitimate structure of business with certain affiliated clauses that are predefined by
the regimental bodies of a selected marketplace (Buhalis and Crotts, 2013). Below described are
some principle judicial factors that should be vitally considered by the proprietor's while
initiating with a new business set up- Licensing- It gives a legitimate consideration of activating the business operation where
licensing is referred to be the foremost factor for operating with a judicial consent of
work. It however depends upon the nature of businesses where it exists with a dual
format of operational licensing to operate the functions of general businesses along with
another alternative of occupational licensing which is required in case the proprietors are
professionally activating any trade related activities, etc. Business insurance- It is referred to be yet another mandate consideration which is
especially referred in the business structures of sole proprietorship into which the
personal assets of the owners are directly in stake. Business insurance is hereby referred
to be the most helpful tool in such circumstance (Baker and Magnini, 2016). It is where
such provisioning covers varied factors of cost, errors and omissions where the sole
proprietors are also recommended considering about health related insurance.
 Health and safety- It is also a leading consideration of operating the business activities
into a safe and secured orientation of work where it refers for both the managerial bodies
and other associated stakeholders of business. It is thus important for the business
organisations to crucially refer to such significant clause of safety for both its employees
and customers with a legal point of view.
d) Analysis of the market conditions that will impact on setting up the new business venture
The undertaken business project is hereby to set up a hotel establishment in a
contemporary area of UK where Greenwich is considered to be a preferred location for it. It is
mainly with reference to initiate with a small set of coffee house and restaurant which is named
as “Bistro cafe and lounge (Bistro)”. Sole proprietorship is the selected type of this particular
organisation with its substantial alternative means of finance (Zhao, Peng and Sheard, 2013).
Thus, with reference to it, the present market condition of UK in food service industry is
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continually rising on a pitching scale. It has shown tremendous growth from the last three years
where it is together assumed to grow by 3.8 billion pounds by the next year of 2017.
Illustration 1: Sales forecast in different years
(Source:Ingram, 2015)
The above statistical data have also depicted the enhanced rate of 2014 where it has
reached up to 48.2 billion pounds. However, their exists some other market stipulations which
directly impacts upon the business as stated below-
 The economic sequel of UK is referred to be a major influential factor which will directly
affect the business decisions by together empowering the decisions made by the
consumers to plan for an outing. It is where some favourable economic conditions of the
market results in huge gatherings at the cafes and restaurants with a counter consequent at
the time of unfavourable economic reform (Wang, 2016).
 Competitor's analysis is referred to be yet another leading prospect of a new business
venture into which the new establishments like Bistro are hereby required to make a
primary analysis of the strengthened and weakened points of their ascertained rivals in
the chosen marketplace.
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TASK 2
Business Planning
a) The organisation developing the mission, vision, aims and objectives of the business
Bistro entity is a spectacular cafe and lounge in a profound location of London, UK
where Greenwich is remarkably full of tourists and travellers. With relation to which, the
established venture of Bistro will hereby greet varied sort of people with their distinct purpose.
They can consider spending their valuable time in the library section of the set up which has
entirely depicted a newer format that is especially designed for the tourers. It is where they can
together refer to order their food and beverages by simultaneously going through the
accumulated set of books that depicts about some historical reforms of London (Walker and
Walker, 2012). However, there is a separate area for a complete dine in purpose in order to take a
full fledge meal into restaurant area of the set up. It is hereby attached with the cafeteria section
with some glorious drawings and paintings made by some genuine artists of London referring to
the designed art and culture of UK. Bistro establishment is together referring to some leading
missions and visions that have together directed their set base of objectives, as described below- Mission- The mission statement of Bistro have hereby referred to provide a leisured time
to their approaching guests and users where they can considerably serve them into a
delighted manner by aptly satisfying their preferential needs ad demands. Vision- The vision statement of Bistro is to open the doors of a true and spirited
destination for their upcoming guests with pride. It is with a constant effort of presenting
some new and amended services for the users each time they visit the place (Mok, Sparks
and Kadampully, 2013).
 Objectives-
◦ A leading objective of Bistro is to continually meet the altering preferences of the
targeted segment of clients by constantly referring to their conferred feedback and
other relative suggestions.
◦ It is with other considerable aim of acquiring a sale of at least 1 million to
successfully grow the business towards a succeeding development.
◦ Another impeccable goal of Bistro is to preserve a gross income of 10 to 15% by the
end of six months by gradually raising it on yearly basis (Medlik, 2012).
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Proposing business structures and systems that will deliver the aims and objectives of the
business
Bistro is designated as a sole proprietorship business to run the pivotal operations of
hospitality. These sectors are often referred to exist with a precise format of customer service
with a clear set of interaction among them. Thus, in order to run a smooth flow of operation, the
business system of Bistro will comprise with a fine set of staff members into its below defined
departmental structures with a single owner to guide and direct them. The veteran staff along
with some other key factors are delineated as- Products of superior quality- A superior quality of products will enormously attract the
consumers by together providing a recognising image to Bistro which will directly result
in enhancing the goodwill of the cited entity (Leung and et.al., 2013). Team of marketing personnels- It is mainly for being a new business set up which will
require the marketing professionals of Bistro to efficaciously broadcast about the active
existence of this cafe and restaurant to its targeted segment of customers. Service department- It is with reference to constantly arrange some training and
developmental sessions for the staff members of Bistro by acknowledging them about the
modifying perceptions of the market. It is mainly in order to serve the upcoming guests
and users them into a gratified sense of competency.
 Administration- It is referred to the managerial set of personnels in Bistro where they are
constantly required to check and review the incurred costs in servicing the products to the
consumers. However, the management body should also refer to constantly motivate and
boost up their staff members to perform into a considerable manner (Hon and Lui, 2016).
b) The product
Analysing gaps in the market for potential products
The emerging trends of hospitality is continuously impacting upon the business ventures
where coping up with such changing trends is of utmost importance for the new establishments
like Bistro. It is therefore important for the organisations to primarily compare the potent
features of the market with actual performances of the business. Such attributes of the selected
market of Bistro are defined as-
 The food and beverages that are being served in Bistro are authenticated with some
promotional methods of advertisement (Gibson, 2016).
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 Changing varieties of food and beverages that reflects the altered taste and choices of
people is leading the business to deal with a hard time to cope up with it.
 Nowadays, people are very health conscious and are thus sticking to healthy diets and
menus. The provisioning department of Bistro is therefore taking full care of it by trying
their best to inculcate some healthy reforms in their designed set of menu.
 Ambience reflects yet another competent factor of fetching a liable interest of the users
where Bistro is constantly thriving towards a reformed atmosphere with sound music and
leisured hospitable amenities (del Mar Alonso, Almeida and Bremser, 2013).
Analysing target markets for the business venture
It is with reference to depict the targeted segment of market by Bistro as a direct mean of
impacting the business. They are referred to boost up the sales of goods and services where the
Bistro have prospectively focused towards the below referred audiences-
 Business individuals.
 Tourists of Greenwich with a prominent existence of couples.
 Local customers where single and teenagers are mostly seen to visit such establishments
(Buhalis and Crotts, 2013).
Interpreting the external factors and market conditions analysed to justify the need for product
Both the external factors along with the changing stipulation of market can be clearly
illustrated by the below referred components into which the extrinsic constituents are directly
with reference to state about some upcoming opportunities and threats defined as- Opportunities- A full fledged experience of work will provide an immense possibility to
boost up the sales and revenues of Bistro with an enhanced profitability ratio (Baker and
Magnini, 2016).
 Threats- In contrary to which, an active existence of competitors in Greenwich who are
working with an analogous feature of work is referred to be the biggest threatening
element for Bistro.
However, there together exists additive external elements to be considered while
operating a business which equivalently impacts upon their vital number of decisions and can be
analysed by using the four primitive factors of PEST model as stated below- Political- This includes some regimental policies of taxation, labour laws, trade and
environmental procedurals to be considered by Bistro.
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 Economic- Inflation and Interest rates are referred to be some correspondent factors of
this peculiar section. Socio- cultural- This refers to the demographic features of a marketplace to define its
growth rate of population by together specifying the lifestyle choices of people and their
changing preferences (Ingram, 2015).
 Technological- These elements depicts the impact of any emerging technological
dimension in the market by together suggesting the entities like Bistro to strengthen their
R&D procedurals.
Specification of business products to meet the needs of targeted market
Bistro is directly aimed at satisfying the needs and demands of its targeted set of
consumers. In order to which, it has launched some unique and sophisticated services for its
upcoming guests and users under a pleasant surrounding. It has included some cost effective
amenities under an affordable price structure of products where they have also designed it into a
contemporary format especially for today's diet conscious people (Hoteliers’ small ideas ignite
big innovations. 2015). Another vitally recognised factor in this market is an apparent requisition
of food and beverages under a single roof where Bistro have together inculcated a refined
criterion of servicing the consumers.
c) Forecast
Producing business planning forecasts based on targets
Start up requisitions
 Judicial cost (Consultants, licensing
and taxing)
 Broadcasting (Brochure)
 Hiring of workforce (Payroll)
 Accountancy along with the opening
expenses General
Total- $52, 500
$15, 500
$1000
$27000
$6000
$3000
Requisition of assets
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 Requirement of money Inventory
Total- $2, 00, 000
$1, 50, 000
$50, 000
Total of both the requisitions $2, 52, 500
Sponsorship by investors
Borrowing
Assumed loss at start up
$1, 50, 000
$50, 000
$50, 000
Total investment of funds - $3, 00, 000
Identification of business responses if these targets are not met
It is in case Bistro needs to deal with some stringent issues of closure as a result of not
meeting the expected response by the users. As a result to which, they might become insolvent or
bankrupt due to some out-shadowing emergence of markets. Here, they might apply a back up
plan with its below delineated measures-
 Tactics of risk management and assessment are referred to be the two most aided tools
for coping up with such issues.
 Strategic management by utilising contingent funds by together referring to the programs
of Human Resource Management (HRM).
 Edging the expenditures with trimmed inventories can also assist Bistro to optimistically
meet the business response (Zhao, Peng and Sheard, 2013).
TASK 3
PITCH
Pitch for his funding of your business proposal by providing the produced documentation to
support the pitch
 Benefit line-
It is mainly with reference to state about the organisational structure of Bistro where it is
established as a service sector under the structure of sole proprietorship. The Greenwich location
of London, UK is the chosen marketplace with a targeted segment of users who are mainly
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